Invested in
Credit Acceptance Corp?
Contact investor lawyers for a free evaluation of your potential claims for compensation today.
- Did you invest in Credit Acceptance Corporation (Nasdaq: CACC) between May 4, 2018 and August 28, 2020 and have you held your CACC shares since?
- Are you concerned about the allegations that Credit Acceptance provided unfair and deceptive automobile loans and false and/or misleading information regarding their asset-backed securitizations to investors?
- Are you concerned you may have purchased Credit Acceptance’s common stock at artificially inflated prices?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation via email at arosca@rscounsel.law, leave a message through the contact form on this page, or call us at 888-998-0530.
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THE CREDIT ACCEPTANCE INVESTOR CENTER IS THE RESOURCE FOR INVESTORS WHO INVESTED IN CREDIT ACCEPTANCE SHARES BETWEEN MAY 4, 2018 AND AUGUST 28, 2020.
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Posted August 18, 2022
Credit Acceptance Investigation
Securities attorneys Alan Rosca and Paul Scarlato have been investigating allegations of securities violations, corporate misconduct, and questionable business practices and misrepresentations involving Credit Acceptance and have identified potential areas of concern.
CACC investors who invested May 4, 2018 and August 28, 2020, still hold their shares, and are interested to evaluate potential options to seek compensation and/or pursue claims related to their Credit Acceptance investment may contact investor rights attorneys Alan Rosca and Paul Scarlato. Attorneys Rosca and Scarlato have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct and are currently evaluating potential claims on behalf of investors in Credit Acceptance. They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, pursuant to court review and approval.
Claims that are not timely pursued may expire or otherwise be lost, generally speaking. Credit Acceptance investors interested to explore options to file claims for compensation should consider taking action promptly.
Concerned CACC stock stock investors investors may contact attorneys Alan Rosca or Paul Scarlato to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
About Credit Acceptance Corporation
Credit Acceptance Corporation is a Southfield, Michigan based auto finance company that reportedly works with car dealers nationwide to enable them to sell cars to consumers “regardless of their credit history.” According to its latest 10-K Annual Report, Credit Acceptance reportedly operates two programs: the Portfolio Program, under which Credit Acceptance advances money to Dealers for the right to service the loans, and the Purchase Program, under which Credit Acceptance buys consumer loans from car dealers, and keeps all amounts collected from consumer.
Credit Acceptance reportedly derives 93% of its revenues from financing charges, which are comprised of interest income, administrative fees, program fees and consumer loan assignment fees charged to dealers, and direct origination costs on dealer loans.
Credit Acceptance common stock trades on the NASDAQ under the symbol “CACC.”
Credit Acceptance Agrees to Pay $27 Million to Settle Lawsuit Alleging Unfair and Deceptive Automobile Loans
In August 2020, the Attorney General for the Commonwealth of Massachusetts filed a complaint alleging, among others, that Credit Acceptance made “high-risk high-interest subprime loans” to borrowers who were unable to repay them while being aware that the performance of its loans was “consistently abysmal.” The complaint further alleged that the company charged the borrowers hidden finance charges on their loans and engaged in “aggressive collection processes” when borrowers defaulted. The complaint also alleged that Credit Acceptance sold securities to investors by falsely misrepresenting the characteristics of the loans and the contracts collateralizing the securities.
As a result, the Commonwealth sought restitution, disgorgement, and statutory damages, among others. According to an Assurance of Discontinuance dated September 2021, without admitting or denying the allegations, Credit Acceptance agreed to pay $27.2 million to resolve the claim, being characterized by the Massachusetts Attorney General as “the largest of its kind with a subprime auto lender.”
Potential Compensation Claims
Credit Acceptance Class Action Complaint Alleged Violations of Securities Laws
In May 2020, a class action complaint was filed against Credit Acceptance Corporation, Credit Acceptance’s Chief Executive Officer Brett A. Roberts, and the Chief Financial Officer of Credit Acceptance Kenneth S. Booth. An amended complaint against the same defendants was filed in July 2021.
The plaintiffs alleged, among others, that the defendants engaged in a scheme and/or made a series of false and misleading statements and omissions, which artificially inflated the Credit Acceptance’s stock price. According to the complaint, Credit Acceptance allegedly failed to disclose to investors that the company approved and funded high-risk loans to customers who were unable to repay them, allegedly marked up prices for cars sold to certain borrowers, engaged in unfair and deceptive debt collection, and willfully issued materially misleading offering documents to investors, among others.
The class action complaint also alleged that, while under the investigation by the Massachusetts Attorney General, Brett A. Roberts allegedly sold $24 million in Credit Acceptance common stock holdings.
In the prayer for relief, the plaintiffs sought damages, pre- and post-judgment interest, as well as reasonable attorneys’ fees and costs, and expert witness fees. Through an 8-K report dated June 14, 2022, Credit Acceptance announced it agreed in principle to pay $12 million to settle the class action claims.
Credit Acceptance Shareholders May Have Options
Investor rights attorneys Alan Rosca and Paul Scarlato at Rosca Scarlato LLC law firm are investigating potential options and are evaluating potential direct and/or derivative claims on behalf of CACC shareholders. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are a Credit Acceptance investor concerned about your investment, you may contact attorneys Alan Rosca or Paul Scarlato to learn more about your rights and for an evaluation of your potential claims, or to provide useful information. All consultations are free. The Rosca Scarlato LLC attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Credit Acceptance investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
These general considerations are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts, and can tailor any advice to that investor’s facts. Credit Acceptance Investor Center is not affiliated with Credit Acceptance Corporation.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
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In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.